The new boss of the World Bank must push for reform and fight poverty

Banga will be able to resume the work of World Bank staff advancing the bank’s initial reform steps in just six months

WASHINGTON (Armfalcon.com) – France’s Development Minister said Thursday (13/4/2023) that he will tell the expected next World Bank president, Ajay Banga, to maintain the bank’s anti-poverty mission while pushing ahead with the next steps in October in its evolution combat climate change and other global problems.

Chrysoula Zacharopoulou told Reuters in an interview that he wanted Banga, the former CEO of Mastercard, to use the international finance summit in Paris to develop ideas and plans to expand climate finance and leverage private sector funds.

Zacharopoulou, a Greek-born gynecologist and former member of the European Parliament who was appointed Minister of State for Development, Francophonie and International Partnerships France 11 months ago, will meet Banga on Friday during a World Bank and International Monetary Fund (IMF) meeting in Washington.

“What I will tell him – or what I will encourage him – is that he will have our support in his mission to complete ambitious World Bank reforms through Marrakech (a city in Morocco), using the June summit in Paris as an important step,” said Zacharopoulou, referring to the annual meetings of the World Bank and International Monetary Fund in Morocco in October.

“This is the first. Second, we must continue to fight extreme poverty,” he said. “That means the poorest countries and their populations must remain at the center of the World Bank’s agenda and the rest of us.”

France on June 22-23 hosted the “Summit for a New Global Financial Pact”, which aims to increase crisis financing for vulnerable countries.

Zacharopoulou said the conference would focus on ways to create innovative new sources of financing for climate change, public health, biodiversity and other public goods and build political momentum for change beyond the $5 billion annual loan increase adopted last week. by World Bank shareholders.

Zacharopoulou said that there is a major focus on incorporating private sector funding to increase climate finance to the very large amounts needed to meet emission reduction goals.

“Public money plays a role in reducing investment risk in the most vulnerable countries. We can use public money to reduce risk but the private sector has to come,” he said.

Banga is a “fit match” for the World Bank assignment, with strong private sector management and finance experience. Because he was born and educated in India, “He knows very well about the challenges of developing countries.”

But Banga, who has promised to provide more sources of lending beyond initial balance sheet changes, will attend the Paris finance summit just weeks after he is expected to take office in early June.

Zacharopoulou said Banga would be able to continue the work of World Bank staff advancing the bank’s initial reform steps within just six months.

“Starting from this important moment, he had some momentum to sign his signature and deliver his vision,” he said. “I think he will have all the international community with him.”

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Translator: Apep Suhendar
Editor: Click Dewanto
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